The Details Of The Assignment Are As Followed As An E 025266 

The Details Of The Assignment Are As Follwed As An Economist For Abc


The details of the assignment require developing a report on the market dynamics of tablet cases for ABC Plastics, incorporating supply and demand analysis, graph creation, and discussion of market responses to various policy changes and economic factors.


Construct a graph showing supply and demand in the tablet case market, using Microsoft Excel. How are the laws of supply and demand illustrated in this graph? Explain your answers. What is the equilibrium price and quantity in this market?


Assume that the government imposes a price floor of $16 in the tablet case market. What would happen in this market? Assume that the price floor is removed and a price ceiling is imposed at $8. What would happen in this market? Now assume that the price of tablet cases drops by 50%. How would this change impact the demand for tablet cases? Explain your answer and reconstruct the graph developed in question one to show this change. Assume that incomes of the consumers in this market increase. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change. Assume that the number of sellers decreases in this market. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change. Explain the difference between a normal good and an inferior good. Would your answers to question #7 change, depending on whether this good is a normal or inferior good? Why or why not? Present your analysis in Microsoft Excel format. Enter non-numerical responses in the same worksheet using textboxes. - NO PLAGIARISM PLEASE

Paper For Above instruction

The market for tablet cases is influenced by various economic factors that can be analyzed through supply and demand principles. To understand these dynamics, it is essential to develop a comprehensive graph representing the current market scenario and explore the implications of different government policies and shifts in economic variables. This analysis provides insights into how market equilibrium is established and how external interventions can alter market outcomes, which are vital for strategic decision-making by ABC Plastics.

Constructing a supply and demand graph in Microsoft Excel involves plotting the quantity of tablet cases on the x-axis and the price on the y-axis. The demand schedule typically slopes downward, indicating that as prices decrease, consumers demand more tablet cases. Conversely, the supply schedule slopes upward, reflecting that higher prices incentivize sellers to supply more. The point where these two curves intersect is the market equilibrium, representing the optimal price and quantity where market forces balance.

Illustration of Supply and Demand Laws

The laws of supply and demand are visually demonstrated in the graph. The downward-sloping demand curve shows that consumers buy more when prices fall, exemplifying the law of demand. The upward-sloping supply curve illustrates that producers are willing to supply more at higher prices, exemplifying the law of supply. The intersection point confirms the equilibrium where quantity demanded equals quantity supplied.

Market Equilibrium

Assuming the demand and supply schedules provided, the equilibrium price and quantity are where the two curves intersect. For example, if at $10, the quantity demanded equals the quantity supplied, then the market’s equilibrium price is $10 with an equilibrium quantity based on the schedules. Precisely identifying these values requires the specific data but generally follows this principle.

Impact of Government Price Floor

Imposing a price floor of $16 above the equilibrium price would lead to a surplus, as suppliers would be willing to supply more than consumers are willing to buy at that price. This excess supply results in wasted resources unless the surplus is absorbed or restricted, leading the market away from equilibrium.

Impact of Price Ceiling

Removing the price floor and imposing a price ceiling at $8, below the equilibrium, would result in a shortage. Consumers demand more tablet cases at this lower price, but producers are less willing to supply, creating a gap between quantity demanded and supplied. Such government intervention disrupts the natural market equilibrium.

Effect of a 50% Price Drop

A 50% decrease in the price of tablet cases would increase demand, as lower prices make the product more affordable to consumers. The demand curve shifts outward, leading to a higher quantity demanded at each price level, and the new equilibrium moves accordingly, typically resulting in a higher quantity and lower price.

Impact of Increased Consumer Income

If consumer incomes increase, and tablet cases are considered normal goods, demand would rise as consumers' purchasing power improves. If tablet cases are inferior goods, demand would decrease as consumers prefer higher-quality alternatives. The demand curve shifts rightward for normal goods or leftward for inferior goods, altering the market equilibrium accordingly.

Decrease in Number of Sellers

A decrease in sellers reduces market supply, shifting the supply curve leftward. This results in a higher equilibrium price and a lower equilibrium quantity, strengthening prices due to reduced competition. The extent of these changes depends on the elasticity of demand and supply.

Normal vs. Inferior Goods

A normal good experiences increased demand as consumer incomes rise, whereas an inferior good experiences decreased demand with income increases. The classification affects responses to economic changes; therefore, the nature of the good influences how shifts in income impact demand and market equilibrium.

Conclusion

Understanding these interactions helps ABC Plastics predict market reactions to policy changes, income variations, and other economic factors. Strategic decisions regarding pricing, production, and market entry rely on such analytical insights, underscoring the importance of continual market analysis using supply and demand principles.

References

  • Mankiw, N. G. (2021). Principles of Economics (9th ed.). Cengage Learning.
  • Perloff, J. M. (2019). Microeconomics (8th ed.). Pearson.
  • Marshall, A. (1920). Principles of Economics. Macmillan.
  • Krugman, P., & Wells, R. (2020). Economics (5th ed.). Worth Publishers.
  • Case, K. E., Fair, R. C., & Oster, S. M. (2017). Principles of Economics (12th ed.). Pearson.
  • Samuelson, P. A., & Nordhaus, W. D. (2010). Economics (19th ed.). McGraw-Hill Education.
  • Varian, H. R. (2014). Intermediate Microeconomics: A Modern Approach (9th ed.). W.W. Norton & Company.
  • Pindyck, R. S., & Rubinfeld, D. L. (2018). Microeconomics (9th ed.). Pearson.
  • Frank, R. H., & Bernanke, B. S. (2021). Principles of Economics (7th ed.). McGraw-Hill Education.
  • Friedman, M. (1953). Essays in Positive Economics. University of Chicago Press.

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